Dec 6 (Reuters) - U.S. pipeline operator Energy Transfer ( ET )

said on Friday it plans to build an interstate natural

gas pipeline in Texas to move gas from the prolific Permian

basin.

The new pipeline, to be called Hugh Brinson, will be

constructed in two phases and would cost a combined $2.7

billion.

The first phase, with a capacity of 1.5 billion cubic feet

per day (bcf/d), would extend from Waha to Maypearl, Texas, and

is expected to come online by the end of 2026.

The second phase would increase the capacity of the new

pipeline to about 2.2 bcf/d and would be constructed

concurrently with the first phase if there is enough demand.

Permian gas production is set to increase to 24.5 bcf/d for

2024, from 22.7 bcf/d in 2023, according to the U.S. Energy

Information Administration. It is projected to reach 25.8 bcf/d

in 2025.

The Permian basin, which straddles Texas and New Mexico,

accounts for half of U.S. crude output and is the second-largest

shale-gas producing region.

Soaring gas production and a lack of pipeline capacity at

the Permian drove down natural gas prices to below zero earlier

this year.